Frugal Strategy: Delayed Spending

by Mary Ann Romans | More from this Blogger

01 Mar 2007 05:41 AM

Here is a great strategy you can use in your family to be frugal and save hundreds (or even thousands) each year. It is called "delayed spending."

What is delayed spending? Well the short answer is that delayed spending is the practice of putting off any purchases that are not necessities. Necessities, of course, is defined as anything that will help keep you alive and in good health, such as your monthly food, shelter, health and heating expenses.

Any other purchase, whether it is a toy or a big screen TV, is subject to the delayed spending strategy.

How does it work? Let's say that your child has his eye on the latest toy. In my house, that is anything to do with Buzz Lightyear and things that have gears, or Disney princesses and anything sparkly--depending on the child in question. Chances are pretty good that he or she wasn't born with a need for this toy, but developed a want for it from commercials, seeing it in the store, knowing his or her friends have it, etc. I'm assuming that your child has an allowance or birthday money he or she wants to use for this toy.

With delayed spending, there is a family-imposed waiting period for making a non-necessity purchase, let's say two weeks. After the two weeks have passed, you can go ahead and give permission for the purchase (if it agrees with your family values, of course).

Why does it save money? Well, there are a number of ways that delayed spending will save money. Here are some examples:

• In two weeks, an even "cooler" toy will appear, and he or she will want that one instead. Impose another two-week waiting period. You see where this is going.
• In two weeks, a savvy child, not wanting to wait, will find a way to borrow this game from a friend, play with it, decide it isn't worth that hard earned money, and then move on.
• In two weeks, the price of the toy may go down because it is no longer the hottest thing around.
• In two weeks, a savvy parent will have time to research the best prices on the toy, or find it at a big discount on ebay. There is nothing worse than buying something only to find the price reduced a week later.

A delayed spending strategy stops impulse purchases right in their tracks. You have already told everyone, including yourself, that there is a waiting period, so there is no discussion or arguments. If the item still exists in two weeks (and if it doesn't, did you really need it), then go ahead and return to the store and purchase it.

Apply this strategy to yourself as well as the kids. If you want to start slowly, first apply the strategy to anything that costs more than a set amount of money. This could be $100, or any amount that makes sense to you. If it costs more, wait two weeks and use the time to do some more research to see if the purchase is worth your money and/or if you can find it for less.

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Learn more about Mary Ann Romans

Mary Ann Romans is a freelance writer and mother of three children. She lives in Pennsylvania with her husband, the kids and a 16-pound cat.

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